Predicting the future is futile, so the best option is to plan for what is in your control and prepare for what is out of your control.

In a “Building on Today’s Success” breakout session, smart advice was shared by Vanessa Oligino, director of business performance solutions at TD Ameritrade Institutional's LINC conference last week. 

Beyond One’s Control

At the outset, Oligino addressed external forces that are mostly out of advisors' control. “It makes it difficult to create a business plan,” she said. For that reason, she advised the conference attendees develop scenario plans, with a best case, neutral and worst-case scenario.

“I had a Wharton professor that said, ’55 percent of what happens in your business is in your control. 45 percent is impacted in your industry,’” stated Oligino.

Of that 45 percent, she cautioned attendees to be more aware of what those ‘out of your control’ factors are so they can be monitored and then the business can react accordingly when change happens.

Possible Challenges To Growth

Her research found that on average 48 percent of referrals come from existing clients and 19 percent come from centers of influence. Additionally, the top 20 percent of clients generate 50 percent of the typical firm’s revenue. Advisors need to reassess how they can expand the pipeline of new clients. “Do you have some other way to replace that?" she asked re you experimenting with new ways to get more referrals?”

Oligino also addressed other issues advisors face when trying to grow their businesses. She pointed out the following list:  market disruptions, succession, attracting and motivating top performers, maintaining culture, multi-generational wealth transfer, aging workforce, missed opportunities, efficiency, political environment, security market trends, and attracting younger investors.

How To Prosper

Oligino pointed out six patterns of opportunities (sourced from trendhunters.com):

1. Acceleration—how do you make things faster? How can you develop them?  How can you make them more educational?  How do we help people get to a better place faster?

2. Reduction—if you have a complicated client service process, can you react to change?

3. Convergence—together you have a stronger value proposition. 

4. Cyclicality—everything returns, so capitalize on trends.

5. Redirection—it is not about trying to grow, but trying to make the world a better place.

6. Divergence—rebelling against the status quo.  It is about personalization and customization.

Additionally, Oligino gave 10 reasons for growth:

• Grow the return on your investment.

• Experience the benefits of economies of scale.

• Build the value of your business asset.

• Satisfy the growing needs of your clients.

• Attract the industry’s best talent.

• Retain your most valuable players.

• Defend the business against marketing disruption.

• Attract potential successors.

• Attract collaborations.

• Ability to implement premium pricing.

Preparing For The future

To avoid growing pains, Oligino encouraged the audience to know what business they are in, while also striving for a higher purpose.

With change coming, Oligino asked the attendees, “How will you adapt?” She suggested that the corporate culture not be just performance-based, which is internal looking and often not as fast.  Instead, be a learning-inspired organization, which is external looking and gives the best chance for survival. “Empower people to have these types of behaviors,” she said.

Oligino added, “Re-evaluate and redesign your service offering. You need to grow your firm to reinvest in your business.”

She ended her presentation with more solid questions for the advisors to think about:

• How do you build on the success that you already have?

• Can you be very purposeful of how you want to pursue growth?

• What is your business strategy?

• Are you the right person? Do you have the vision? Can you sell that to your people? Can you be the driving force? Is it time to bring on someone else? Is it time to hire someone else?

• What will your clients want?

• Do you have the flexibility to adjust?

• Can you pivot as you learn?

• Can you drive organizational change?

• Do you have the right people?

Oligino wrapped up, saying, “There is no roadmap. You’re going to have to work through it. Make decisions with intent. Decide what business you want to be in!”

Mike Byrnes is a national speaker and owner of Byrnes Consulting, LLC. His firm provides consulting services to help advisors become even more successful. Need help with business planning, marketing strategy, business development, client service and management effectiveness? Read more at ByrnesConsulting.com and follow @ByrnesConsultin.